5-Nanometer Technology Supported TSMc’s Fourth Quarter Business

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TSMC’s shipments of 5-nanometer accounted for 20 per cent of total wafer revenue; 7-nanometer and 16-nanometer accounted for 29 per cent and 13 per cent respectively

TSMC has announced consolidated revenue of NT$ 361.53 billion, net income of NT$ 142.77 billion, and diluted earnings per share of NT$5.51 (US$0.97 per ADR unit) for the fourth quarter ended 31 December 2020.

“Our fourth quarter business was supported by strong demand for our industry-leading 5-nanometer technology, driven by 5G smartphone launches and HPC-related applications,” said Wendell Huang, VP and Chief Financial Officer of TSMC. “Moving into first quarter 2021, we expect our business to be supported by HPC-related demand, recovery in the automotive segment, and a milder smartphone seasonality than in recent years.”

The company noted that year-over-year, its fourth quarter revenue increased 14 per cent while net income and diluted EPS both increased 23 per cent. Compared to third quarter 2020, fourth quarter results represented a 1.4 per cent increase in revenue and a four per cent increase in net income.

“In US dollars, fourth quarter revenue was $12.68 billion, which increased 22 per cent year-over-year and increased 4.4 per cent from the previous quarter,” read TSMC’s official statement

It continued, “Gross margin for the quarter was 54 per cent, operating margin was 43.5 per cent, and net profit margin was 39.5 per cent.”

In the fourth quarter, TSMC’s shipments of 5-nanometer accounted for 20 per cent of total wafer revenue; 7-nanometer and 16-nanometer accounted for 29 per cent and 13 per cent respectively. Advanced technologies, defined as 16-nanometer and more advanced technologies, accounted for 62 per cent of total wafer revenue.

The company expects the first quarter 2021 revenue to be between US$12.7 billion and US$13.0 billion.

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